Scandinavian countries have lower inequality and better social welfare, making people think they have higher welfare than the US. But the US doesn't copy their institutions. In a world where all countries benefit from global technology advances, some countries will choose high-inequality capitalism for more innovation, while others will benefit from their success without the same cutthroat competition. Surprisingly, countries with gentler capitalism may have higher welfare, but it's not best for the competitive ones to switch. Social democratic parties or unions can help prevent extreme capitalism at home, pushing other countries to take on that role.